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B-260993 1 (1996-06-26)

handle is hein.gao/gaocrptadqi0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Economy Act Payments After Obligated Account is Closed File: B-260993 Date: June 26, 1996 DIGEST After an Economy Act agreement is completed and the ordering agency's appropriation obligated by the agreement is closed, i.e., canceled, an audit of the performing agency's contractor (engaged to provide the ordered services under the agreement) discloses that the performing agency owed the contractor additional amounts. Using no year funds, the performing agency pays the contractor and seeks reimbursement from the ordering agency. Since the Economy Act requires the ordering agency to reimburse the performing agency its actual costs, the ordering agency should reimburse the performing agency for payments made to the contractor using current appropriations available for the same general purpose. 31 U.S.C. § 1551 note. DECISION The Chief Financial Officer, Department of Energy (DOE), has requested a decision on the liability of the Office of Surface Mining (OSM), Department of the Interior (an ordering agency under the Economy Act) to reimburse the DOE (a performing agency under the Economy Act) additional amounts owed for work performed roughly 10 years earlier and after the appropriation OSM obligated to perform the agreement has closed. As explained below, OSM should reimburse DOE for costs properly incurred to perform an Economy Act agreement even though the appropriation obligated by the agreement has closed. BACKGROUND The Surface Mining Control and Reclamation Act of 1977, Pub. L. No. 95-87, 91 Stat. 447 (1977) (30 U.S.C. §§ 1201 et sea. (1994)), established the OSM with responsibility to identify and reclaim abandoned coal mines and land or waters affected by the mining process. In March 1979, under the Economy Act, the DOE and OSM entered into a Memorandum of Understanding pursuant to which the Oak Ridge National Laboratory (ORNL) was to implement a national inventory capability and provide an analysis and maintenance function for the abandoned mines program. OSM agreed to reimburse DOE for actual costs under the agreement. 448618

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